Teck Resources Limited has agreed to sell its 77% stake in Elk Valley Resources to Glencore plc for US$6.9 billion to focus on copper production and enhance shareholder value.

Information on the Target

Teck Resources Limited, a prominent Canadian resource company headquartered in Vancouver, specializes in the production of metals that are crucial for economic development and energy transition. Recently, Teck has divested its remaining 77% stake in its steelmaking coal division, Elk Valley Resources (EVR), to Glencore plc, marking a decisive step toward focusing exclusively on its core business of metals production. This strategic sale has garnered significant cash proceeds of approximately US$6.9 billion (CAD $9.5 billion), enabling Teck to strengthen its balance sheet and fund future growth initiatives.

The divestment aligns Teck’s operations more closely with the global shift towards cleaner energy and sustainability. By separating from the coal industry, Teck aims to concentrate on expanding its copper production, which is vital for various sectors, including renewable energy technologies and electric vehicle production.

Industry Overview in Canada

The mining sector is a cornerstone of Canada's economy, contributing significantly to GDP and providing thousands of jobs. Canada is rich in natural resources and has a well-established regulatory framewor